Did you know Canada contributes more than 3% to the global share of millionaires? Canada is home to one of the largest cohorts of millionaires. According to statistics, the burgeoning number of millionaires is showing no sign of regression. Despite the COVID-19 pandemic, the wealth of the Canadian population kept reaching new milestones. By the end of 2020, the top 20 Canadian billionaires had added 37 billion USD to their collective net worth. This trend was not only limited to billionaires. Several millionaires also witnessed a steep increment in their wealth. They were soon followed by several wealthy Canadians who surpassed the 1-million-dollar threshold.
How many millionaires are in Canada in 2020/21?
According to the Global Wealth Data published by Credit Suisse, there were 1,681,969 millionaires in Canada at the end of 2020. Despite economic setbacks, 2020 alone saw about 246,000 new entrants to this list (3). Economists are expecting to see a similar trajectory in 2021.
Interestingly, more than two-thirds of these are self-made millionaires with inspiring rags-to-riches stories. However, the majority of these Canadians are entrepreneurs and investors who boast multiple streams of income. Which industry makes the most millionaires? The tech start-up culture is also taking off, with several young entrepreneurs joining hands to launch unique services; in a bid to become millionaires of the future.
Lately, the social media boom also saw several new Canadian millionaires join this exclusive list. Although they still make up only a fraction of the total percentage, several YouTubers and Tick Tock celebrities became millionaires by producing engaging video content for their viewers.
As far as conventional career paths are concerned, physicians and corporate managers earn the most, giving them a greater-than-average chance of becoming a millionaire. But, apart from that, the IT and Software industry specialists are also cashing in on their expertise.
What percentage of Canadians are millionaires?
Currently, Canada sits at the tenth position among countries with the highest percentage of millionaires. Roughly 5.6% of the adult population enjoy this coveted title. By considering the total population of Canada, which includes both adults and minors, this percentage comes out to be 2.32%.
In addition, Canada ranks seventh globally for UHNW individuals (individuals with a net worth of at least 30 million dollars). This number makes Canada one of the world’s wealthiest countries and the second wealthiest in North America, only behind the United States.
Most Canadian millionaires are concentrated in rich cities like Vancouver, with Calgary reportedly having the highest number of millionaires. According to a statistics report published in 2018, 12.3 % of the adult population in Calgary consists of millionaires. The same report also revealed that the Wealthiest People in Calgary have the third-highest median income (1.4 million dollars) among Canada’s major metropolitan areas.
Economists predict this percentage to grow significantly in the upcoming years since many individuals have wealth below the one-million-dollar line. Moreover, as soon as the economy recovers from the COVID-19 recession, these individuals are expected to surpass the threshold.
What is the top 1 percent net worth in Canada?
Breaking into the top 1 percent of the wealthiest people in Canada is no easy feat. You’ll need approximately 7 million USD (12) and an annual income of 180K before you can count yourself in this exclusive cadre.
Canada’s Richest Families & 1 percent holds more than 25% of the country’s riches. This figure is a sharp indicator of the growing disparity in wealth distribution between the rich and the poor in this country. Nevertheless, this figure is still much lower than the global average, according to which the wealthiest 1 percent own about 43% of the global wealth.
A sizeable portion of this 1 percent is dominated by individuals having generational wealth. In Canada, the top 1 percent collectively hold more than 3 trillion dollars in wealth, making them one of the most important stakeholders of the Canadian economy.
More than 10,000 adults in Canada fall in the category of UHNW individuals, and they dominate this top 1 percent category. Most of these ultra-rich individuals have also invested in stock markets, real estate and related ventures.
How many billionaires are in Canada?
2021 was undoubtedly the best year for billionaires in Canada. The country saw a monumental rise in the number of billionaires in a single year, a record growth from 44 in 2020 to 64 in 2021 (13). At this time, 65 billionaires in Canada hold a massive 231 billion dollars in wealth. Their collective wealth soared by an unprecedented 88 billion USD in one year.
David Thomson and his family are the biggest names in this billionaire club, he owns a fortune thanks to his late grandfather’s multi-billion media and publishing company. The Toronto-based billionaire is the chairman of Thomson Reuters and holds stakes in various Canadian telco and media companies, both national and international. Comfortably sitting at the 33rd rank among the richest people globally (14), David Thomson has a fortune north of 45 billion dollars.
Of the 64 billionaires in Canada, 7 have listed E-commerce as their source of wealth. The list of billionaires includes Joseph Tsai, vice-chairman of Alibaba, and Tobias Lütke, CEO of Shopify, among several others. Most of these billionaires are self-made, and it is safe to say that diving into the online business world paid off for them.
The bloom in the international trade of natural resources with China and Canada’s increased focus towards its service sector is the primary cause behind the burgeoning number of Canadian millionaires. This number is expected to reach 2 million by 2023 (3), but we might reach this milestone even sooner with the recent increments in Canadian wealth.
How Many Millionaires In Canada
Canada will have 185,000 new millionaires at the end of the year (2020) with an average annual income of $1.2 million, to bring the total number of millionaires in Canada to 1,681,969 in 2021.
Sources:
2) BNN Bloomberg – https://www.bnnbloomberg.ca/canada-s-top-billionaires-gained-37b-since-covid-19-began-report-1.1495459
3) Credit Suisse – https://www.credit-suisse.com/media/assets/corporate/docs/about-us/research/publications/global-wealth-databook-2021.pdf
4) Financial Post Ca. – https://financialpost.com/personal-finance/most-canadian-millionaires-are-self-made-and-almost-half-are-immigrants-poll-shows
5) Financial Post – https://financialpost.com/technology/how-youtube-is-making-some-of-these-canadians-millionaires
6) University Magazine Canada – https://www.universitymagazine.ca/jobs-will-make-millionaire-canada-2019/
9) Fact Sheet by Calgary Wealth – https://calgaryeconomicdevelopment.com/dmsdocument/326
10) Statistics Canada – https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110005501&pickMembers%5B0%5D=1.1&pickMembers%5B1%5D=3.3&cubeTimeFrame.startYear=2017&cubeTimeFrame.endYear=2018&referencePeriods=20170101%2C20180101
12) Investment Executive – https://www.investmentexecutive.com/news/industry-news/canadas-wealthiest-1-hold-25-6-of-riches-new-pbo-report-says/
13) Forbes – https://www.forbes.com/sites/giacomotognini/2021/04/06/the-countries-with-the-most-billionaires-2021/?sh=4388f494379b
14) Forbes – https://www.forbes.com/billionaires/
16) Wikipedia – https://en.wikipedia.org/wiki/List_of_countries_by_the_number_of_millionaires